The corporation is required to record entry for cash dividend declaration. Only the common stock outstanding or the 14,800 shares are entitled to receive dividends. Thus, the journal entry to record the dividend declaration is as follows:
Debit: Retained Earnings $7,400.00
Credit: Dividends Payable $7,400.00
<em>To record cash dividend declaration</em>
Answer: $520,000
Explanation:
A bad debt expense occurs when an economic entity which could be an individual or firm cannot collect a receivable because the said customer can't meet their obligations anymore.
The amount of bad debt expense recognized for the year will be the outstanding accounts receivable at year end multiplied by the percentage of uncollectible outstanding receivables. This will be:
= 8% × $6,500,000
= 8/100 × $6,500,000
= 0.08 × $6,500,000
= $520,000
The extent to which a market allows assets to be bought and sold at stable prices.
Answer:
The correct answer is: decrease in demand.
Explanation:
The equilibrium price and quantity are determined through the intersection of demand and supply curves.
An increase in demand will cause the demand curve to move to the right. This will cause both the price level as well as quantity to increase.
A decrease in supply will cause the supply curve to shift to the left. This will cause the price to increase and quantity to decline.
A decrease in the demand curve will cause the demand curve to shift to the left. This will cause the price as well as quantity to decline.
